The topic of gender and sexuality can vary depending on the species/region, but in general it’s something of a non-issue. The first gods, who are really just embodiments of broad concepts given life, don’t have traditional genders. Sometimes they are referred to as a god or a goddess, with neither being inaccurate. The first prototype of humans created by the goddess of creation were completely sexless, as well.
Fairies and elves tend to be the most lax and fluid about sexuality (and gender identity, though the fae tend to explore it more). They tend to be chaotic, long-lived, or both, and that gives them plenty of time and inclination to test their own boundaries.
There are some human communities where gnc folk might be met with some confusion, but with the gods as an example, people wouldn’t generally be hostile. Just bemused, perhaps, with the occasional grumble here and there that It’s their own godsdamned business, ain’t it?
Elias Dawn, a demigod/later ascended god of mischief and storms, is one of the specific characters I’ve written that exemplifies this. He is pansexual and genderfluid, and occasionally has “she days” during which she will adopt different pronouns and shapeshift to reflect her feelings for the day. Elias travels a lot, and he has met all kinds of people, and so far he’s never been run out of a town, big or small, for his preferences. It’s pretty much always because he stole something or sassed the wrong person.